Observed Signal · Jan 28, 2026 · Market Research Report · Source: State of Streaming · Impact: 3/5 · Sentiment: Negative
Mediaocean: Marketers Boost AI and CTV but Tech Lags
A Mediaocean 2026 Advertising Outlook report finds advertisers are shifting budgets toward Connected TV (CTV), digital video, social and AI-driven media, but face an "execution gap" caused by fragmented technology and poor data quality. The report cites that 63% of brands plan to increase CTV/digital video spend, social is slightly above 60%, and AI-driven media adoption exceeds 50%. While generative AI is viewed as the top consumer trend, only 43% of marketers use AI for high-level research and just 19% use it for campaign orchestration. Over 40% cite data quality and system-connection issues as major hurdles; 86% prioritize cross-channel orchestration but only ~10% have unified systems. Sustainability tracking is emerging (about one in six marketers).
The report documents a major industry shift of budgets toward CTV and AI while highlighting systemic ad‑tech and data quality issues that hinder execution — important for media planners, AdTech vendors, and measurement providers.
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Key Takeaways & Evidence Grounding
- Mediaocean released a 2026 Advertising Outlook report on marketer trends and technology gaps.
- 63% of brands plan to increase investment in Connected TV and digital video in 2026.
- Generative AI named top consumer trend; 43% use AI for high-level research but only 19% use it for campaign orchestration.
- Over 40% of respondents cite poor data quality and difficulty connecting insights across systems as major hurdles.
- 86% prioritize cross-channel orchestration but only about 10% have unified systems; ~1 in 6 track environmental footprint.
Connected Companies & Entities
3 Entities mappedOntology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Marketers Increase AI and CTV Spend; Execution Gap Looms
A Mediaocean report highlighted by State of Streaming (Feb 5, 2026) finds advertisers are increasing 2026 budgets for Connected TV (CTV) and AI-driven media, but a large “execution gap” caused by fragmented ad tech and siloed systems is preventing brands from realizing the value of those investments. The report states 63% of advertisers are boosting spend on CTV and digital video, and over half are increasing AI-driven media spend, while more than a third are reducing local and national TV budgets. More than half of advertisers name fragmentation as their top concern; while over 40% use AI for data analysis, fewer than 20% use it for campaign orchestration, and only one in ten report a truly unified ad tech stack. Nearly 40% now prioritize orchestration to integrate tools, a shift Mediaocean’s CMO Aaron Goldman argues will drive advantage.
Marketers Slow to Use AI for Influencer and CTV
Digiday+ and Modern Retail+ surveys of more than 100 marketing professionals in Q1 2026 find marketers are adopting AI faster for social and retail media than for influencer and connected-TV (CTV) channels. Only 25% use AI for influencer marketing—mostly for data analysis (75%), content creation (63%) and outreach (56%)—while 82% report not using AI in CTV campaigns; among the 18% who do, common uses include data analysis (69%) and content creation or ad buying (54%). Brands and agencies cite authenticity and consumer-trust concerns about virtual influencers. The reporting highlights vendor and platform activity (Beekman 1802, Bezel, Later, POP.STORE; Amazon and Roku tools) and research advances such as VOID, an AI video tool demonstrating advanced editing and object removal.
Digital Video Ad Spend Rises as AI and Targeting Accelerate
The Interactive Advertising Bureau (IAB) projects U.S. social video ad spending will grow 13% in 2026, outpacing connected TV (CTV) growth projected at 11%, signaling a shift toward feed-based platforms. The IAB’s findings — based on a survey of 360 U.S. marketers who spent at least $1M last year — estimate total U.S. digital video spend reaching $80 billion in 2026. Industry sources cited falling production costs from generative-AI creative tools, stronger targeting capabilities for smaller advertisers, and rising user video consumption (Meta reported an 8% rise in video watch time in Q1 2026; YouTube ad sales rose 10.7% to $9.88B) as drivers. While CTV continues to grow, programmatic CTV and quality adjacencies remain meaningful draws; nearly half of surveyed brands (49%) named targeting capability as their top investment criterion, up 23% year-over-year. The article includes quotes from agency and brand executives describing budget shifts from CTV to social video.
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